In this search, we looked for what we call a "perfect positive fan," meaning each of the price, the 20-day, 50-day, 100-day and 200-day averages stack one above the other in order, with price on top and the 200-day average on the bottom, and with a positive linear regression slope over 200 days.
To that we add a liquidity minimum of $20,000 volume per minute on average daily for three months, and also on the last trading day (2011-05-23).
From all ETFs, here are the 12 that passed that screen:
- (DVY) iShares DJ Select Dividend Index Fund
- (IBB) Biotech iShares
- (IHF) iShares Dow Jones U.S. Healthcare Providers
- (IYT) iShares DJ Transportation Average Index Fund
- (IYZ) iShares Telecom
- (PFF) iShares S&P U.S. Preferred Stock Index Fund
- (PPH) Pharm Holders
- (SDY) SPDR S&P Dividend Index
- (XBI) SPDR S&P Biotech
- (XLP) Consumer Staples Select Sector SPDR
- (XLU) Utilities Select Sector SPDR
- (XLV) Health Care Select Sector SPDR
Conservative, defensive ETFs take the day, with the exception of the transports and biotech which may not be normally thought of as defensive.
Disclosure: We hold DVY, PFF, SDY and XLU in some but not all managed accounts as of the publication date of this article.
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